Buy a Rental Property
Grow your Portfolio
Are you ready to own income-producing real estate assets? Kirksley can help you find financing to start or expand your rental property portfolio whether your ambitions are modest or massive. Owning a real estate portfolio business that generates steady cash flow from stabilized properties is a great way to build lasting wealth.
Residential Housing in a Rental Portfolio
Most real estate investors seeking to build a rental property portfolio will start off in the residential property segment. This segment mainly consists of non-owner occupied property such as single family homes, 2-4 unit multi-family homes, townhomes, condos, and now vacation rentals. Real estate rental property financing to add properties to a portfolio will have these characteristics:
a stabilized and rent-ready property, no rehab required
long-term 30-year fully amortized loans or possibly shorter term interest on single-asset portfolios, shifting to 5-10 year terms on multi-property portfolios (i.e. with balloon payment at end of term)
fixed or adjustable rates quite variable on cash flow, credit, term, and LTV
loan amounts of $50K to $2M per property and up to $50M on large portfolios with many properties
max LTV as much as 80%
declining pre-pay penalties (can be reduced to zero with higher rate)
minimum credit at a 660 FICO but better terms >700 score
Please note these loans are for non-owner-occupied properties, meaning the real estate investor does not reside in the rental property owned. Commercial real estate financing is designed for investors in properties generating rental income from others.
Larger Residential and Commercial Properties in a Rental Portfolio
Experienced real estate portfolio or high net worth investors will often operate in the larger residential and commercial real estate space with these property types: large multi-family developments (multi-story apartment buildings), mixed-use, retail, office, senior living, and light industrial.
Financing for buying or adding a larger residential and/or commercial properties into a rental portfolio have these characteristics:
5-10 year terms on large portfolios (i.e. with balloon payment at end of term)
fixed rates for the 5-10 year term
loan amounts of $500K to $100M
max LTV as much as 80%
For large and stabilized income-producing commercial real estate properties that need to close very fast, an attractive option is a CMBS conduit loan. All CMBS conduit loans are non-recourse (no personal guarantees) to the investor. They are available for loan amounts from $2M to $100M and also allow for unrestricted cash-out on refinance. All CMBS conduit loans are fixed rate for 5, 7, or 10-year loan terms with 25/30 year amortization schedules (i.e. a balloon payment at end of term). CMBS conduit loans can also close in as little as 30 days. CMBS conduit loans can also be attractive in the case of poor personal credit scores because the loan is based mainly on the income from the property.
For more information on utilizing the unrestricted cash-out feature of a CMBS conduit loan, or in order to refinance a pending balloon payment due on a rental portfolio loan, visit the Refinancing a Rental Portfolio page.